How to start a Handyman business?
If your neighbors, friends, and family constantly ask you to help them fix the kitchen sink or help with DIY maintenance projects, then it’s clear that you have it in you. You can fix things, and that’s a handyman’s skill. But starting a handyman business is far from just being able to fix a few bolts and work on DIY projects.
It comes with the struggle of understanding the industry, your competitors, target audiences, and a lot more to succeed. Despite the hardships and difficulties, a handyman’s business is worth it. You enjoy flexibility, a good income, and an active lifestyle.
So, if you are planning to start a handyman business, it’s best to follow a guide. Speaking of which, this article can help you go through a step-by-step process to start a handyman business. So, without delay, let’s start.
Ideate: Handyman Business Planning
Before you enter the Handyman industry, plan properly to analyze your feasibility of starting a handyman business. Here are some crucial steps to follow –
1.Why? Event Planning Market Assessment
The handyman business is always relevant, and it’s never too late to start a handyman business. But, before you start, thorough market research and understanding your target customers are important.
It’s a competitive market, and many established brands are already your immediate competitors in the handyman industry. The best way to tackle it is to develop your understanding of the industry first. A thorough market research should help you identify market gaps you can fill in.
For example, the local market doesn’t have a specific handyman service from the current service providers. You can even find gaps in the service pricing points and win costumes over with a better price.
2.What? Value of Your Handyman Services
For a handyman, it’s the skills that add value to the customers. The services your business will provide come from the handyman skills you and your employees hone over a period.
In fact, you can turn your plumbing skills or skills of being an electrician into services and base your marketing on those. When you know the value you are providing to your customers and when they acknowledge it, you can charge them with a high price.
Remember not to add any services you don’t have skills of yet. If you have any skill gaps, take the necessary apprenticeship or training to fill them. Also, your skills and services should be listed on your website so that your customers know what you provide.
3.Who? Target Customer Research
Basically, your handyman business clients are homeowners and commercial property owners. It’s important to have an idea of who you will provide your services to. Is it for the residential real estate owners? Or do you want to work for commercial property owners? In fact, you can also provide services to both commercial and residential properties.
Study your competitors and find out who their target customers are. Sometimes, real estate agents are very helpful, and they can work as a bridge between your business and your clients by referring you to their home buyers and sellers. As you keep researching and building your network, you will also be doing word-of-mouth marketing for your handyman business.
4.Where? Choose a Location for Your Event Planning Business
Location is an important factor in driving the growth of your business. Of course, you can start your handyman business from home. But, as you get more clients and your business expands, you will need a better place to operate your business.
You will have more employees working for you with more vehicles and equipment ready in the inventory.
But, if you are choosing a commercial place for your business, here are some tips to remember –
- Choose a central location accessible through public transport.
- The place should be spacious and ventilated for natural light.
- The lease should be flexible. Your business should be able to expand when time arrives.
- No further renovations should be required to start a business in the commercial workspace you buy.
5. Start a Handyman Franchise/ or Build from Scratch?
Yes, you have many immediate competitors to battle with right from the moment you enter the handyman industry. But, if you want a sure shot at handyman business success, you can try buying a handyman franchise. There are many handyman franchises available for purchase in the USA. If you are going this route, start by doing your online search.
You can buy a Handyman franchise and follow the proven track record, business model, and strategies to succeed. However, the initial investment can be sizable. If you are more into a low-cost startup, then you have to build your Handyman business from scratch. You have to select if you want to start a franchise or a business from scratch.
6.Write a Business Plan
If you are starting a business from scratch, you have to write a business plan. The following are the most common components of starting a business.
Handyman Business Plan
- Executive summary: In the first part of your business plan, the executive summary includes your mission, vision, and achievements as a business.
- Business Overview: the business overview includes your mission, vision, and the problems your business aims to solve in the market.
- Product and Services: In this portion, include all the services your business is providing.
- Market Analysis: Your business plan should also include your potential market analysis. Here, you include target market analysis, market trends, and demand factors.
- Competitive Analysis: Competitive Analysis includes the analysis of your handyman business competitors, as well as their strengths and weaknesses. You can also identify and note down market gaps you can fill in here.
- Sales & Marketing: This portion of the business plan includes promotional strategies, advertising tactics, and the different channels through which you will promote your business.
- Management Team: include key responsibilities within your handyman business and the team of people who will be handling those responsibilities. In addition, add the necessary experiences and qualifications needed for these roles here.
- Operation: Describe the day-to-day operation of your handyman business, how it will operate different tasks and schedules, and any partnerships that your business has.
- Financial Plan: This portion includes your startup cost, revenue forecasts, and plan for your handyman business.
- Appendix: This part includes all the additional information like spreadsheets, contracts, or supporting documents enhancing the handyman business plan.
Start: Establishing Your Handyman Business
How to start a handyman business? Once you have your business plan, you have to think of a handyman’s business name to formally start your business. Does it feel difficult to choose a business name? Here, let us help you –
7.Choose Your Business Name
Your business plan already has the personality of your business outlined. You can look into it to find a relevant name.
- Try to find names that are easy to remember and helpful and that build trust among your target audience.
- Your competitors may have some unique names. Research your competitors’ names for reference and carve a unique name out of it.
- Ask your family, friends, and colleagues for feedback on the names you shortlist. You can also take suggestions from them.
- Avoid using complex words, jargon, and words that are too obscure for your business names. It will confuse your customers.
- Your business name has to include the value your business is providing to the customers.
- If you still struggle to find a proper name for your handyman business, look for business name generators to take suggestions from there.
8. Get Your Event Planning Business Domain
Choosing your business name is a crucial aspect when starting a business. Not only are you going to start a business, but you are also building a brand. Your business name should be reflected on your social media account, website, and your marketing materials. After you have decided on the right name, it’s time to look for a domain name that has the same name.
It will help to have a creative and quirky name if you want to get a domain name for your business pretty easily. Go to platforms like GoDaddy to find your business domain name.
9. Incorporation: Register Your Event Planning Business
So, you have your business name ready, and you also purchased a domain for your handyman business. The next step is to register your business as a legal entity. There are different structures for businesses. Following are different business structures you can choose to incorporate into your handyman business.
Sole Proprietorship: A sole proprietorship is a business model in which a single owner acts as the person responsible for making decisions for the business. Both the profit and the loss of the business depend on the sole proprietor.
General Proprietorship: General proprietorship is similar to sole proprietorship. But, in this case, there are more than two people involved in the business. Here, all the participants are liable for the business. If you are incorporating your handyman business under a general proprietorship you can keep the agreement either in written form or in verbal.
LLC: if you are starting a handyman business, an LLC would be the right legal structure to follow. The business owner and the business are set up as different entities under an LLC. The business owner doesn’t have to carry any liabilities related to the business.
C Corp Business: you can also get your business structured as an LLC. Here, the owners are not liable for the profits and losses of the business. However, the owners earn their profit through shareholder dividends.
Usually, small businesses like handyman businesses are better suited for an LLC structure. You can also work as a sole proprietor if you are the sole operating member and the owner of the business.
10.Get Your EIN
You can get an EIN or employer identification number both online and offline. It’s the process of getting ready for your business tax filing. You will also need your EIN for your handyman business bank account for license applications and filing tax returns. With an EIN, you will be able to fast-track the process of starting and operating your business.
11.Get Funding: Fund Your Handyman Business
You can start your Handyman business with a low budget if you are starting from scratch. But, if you want to start a franchise instead, it’ll mean you have to gather a sizable amount of funds. You can get funding for your handyman business in different ways.
For example –
It is a low-cost startup idea. But if you cannot buy a franchise, then you don’t need to spend too much money or start a new business. If you don’t have enough savings to fund the minimum startup cost, you can try different ways.
Here are some common ways of getting your funds –
- SBA-guaranteed loans.
- Ask your friends and family.
- Break the bank.
12. Obtain Licenses
Now that you have your EIN number and your bank account ready, you can finally get the permits and licenses needed to operate as a handyman. However, research your state, local, and federal government regulations and see if there are any special permits needed to operate a handyman business in your location.
Some common licenses and permits your business may require are –
- Health license from OSHA
- Copyrights
- Permits
- Trademarks
- Patents
Again, if your city or country has specific legal requirements, ensure to adhere to them while setting up your handyman business. Do check your state, city, and federal government websites for a detailed overview of the most necessary permits and licenses.
13. Business Bank Account
It’s important to keep your personal and business finances separate. So, even if it’s a small business, set up a business account for all your business-related transactions. It’s important to create a separate business account for your bank.
14. Get Your Insurance
Secure your handyman business with business insurance. Without insurance, any business may be affected by unforeseen events. Lack of insurance can slow down operations or put a business at a standstill during a moment of distress.
Launch Your Handyman Business
Now, you are ready to start operating your handyman business in your location. Ensure that your services are offered at a competitive price and they are made for a particular target audience. It is a rewarding business idea if you have the right business plan and if you are ready to face challenges head on. As you grow and expand, you will hire more people and continue providing your services to more clients.
So, did you find this article helpful? Share your experience of starting a handyman business with us. Thank you.
RECOMMENDED READING:
